And other companies are already in this space providing basically the same service.
It seems to me, people applying how companies 1st world countries + the US operate to how companies in 3rd world countries (except the US) have to operate.
If for example you require a third party exchange to sell to fiat currency, that should work.
But that exchange has to do the KYC stuff and the unbanked are still cut out.
Now if it's a local exchange for a local currency, not USD then is fine.
They can exchange in physical currency which would be acceptable in most third world countries and with the amount physical currency floating around they wouldn't need to get any from the US, no?
That runs afoul of most money laundering regulations, so if you have any presence in the US they'll go after you, and they'll prosecute anyone with any serious connection to it and extradite those people to the US where possible.
Moving money across international borders is not a problem you can just engineer around. You have to play by the rules.
Which is the only fiat currency Diem supports conversion into right now.
The dollar is traded so much that I don't think they need to actually get dollars from the US to be able to use the dollar. If it's going into banks, yea, but if you're just giving people the notes, you're good to go.
> This is meant to be a completely different ecosystem, no? An ecosystem not controlled with the US. This isn't a normal financal service, it's not banking, it's outside of banking hence why it's aimed and people without banks.
Last I checked, Facebook is a US company, with a US headquarters, publicly traded on a US stock market, and with an American CEO and controlling shareholder. So, unless they all want to relocate permanently to "some random African country that is in the middle of a civil war", they're going to have to deal with US regulations.
There is no such thing as an ecosystem not controlled by the US. You have any ties with the States (and Facebook, clearly, does), you gonna comply with whatever rules they come up with. If you don't believe me, ask Huawei's top manager. Or lots of other people like him.